A powertrain of a typical four-wheel-drive vehicle includes an engine, a transmission, a transfer case, front and rear driveshafts, and front and rear differentials. The transfer case is operatively connected to the transmission to direct power to front and/or rear wheels. The front driveshaft operatively connects the transfer case to the front differential and the rear driveshaft operatively connects the transfer case to the rear differential. The front differential drives the front wheels and the rear differential drives the rear wheels. During certain driving conditions, the transfer case is operated to direct power to only the rear wheels. In other driving conditions, i.e., in four-wheel-drive, the transfer case is operated to direct power to both the front and rear wheels.